Western General Insurance Company, in liquidation

Liquidation Order: 8/5/2021

The Insurance Commissioner of the State of California v Western General Insurance Company

Case No. 21STCP01655

 

The California Insurance Guarantee Association (CIGA) is diligently working with the Liquidator's Office to obtain the open claims information it needs to handle claims relating to policies issued to Western General policyholders.  At this point CIGA has very limited information on open claims and all claims' records are with the insolvent insurer which is being overseen by the liquidator, the California Insurance Department's Conservation and Liquidation Office (CLO).  The CLO will manage the transfer of claims to CIGA.  CIGA will then be able to respond to inquiries and begin processing claims.   We anticipate being able to process claims beginning September 3, 2021.

 

 

Frequently Asked Questions

 

What is CIGA?

CIGA is a statutory agency that handles the claims of insolvent member companies in California. If your insurance company goes out of business and the statute applies CIGA will handle any claims.

 

CIGA is a non-profit association created by the legislature to pay certain claims in the event that an insurance company becomes insolvent. CIGA is not an insurance company, it does not issue policies, collect premiums or otherwise stand in the shoes of an insolvent insurance company. We exist solely to pay covered claims when an insurer becomes insolvent.

 

When is CIGA responsible for a claim? Does CIGA have my claim?

An insolvency must be ordered by the Court. The Court sets the date CIGA takes over the claims. It can take a few weeks for CIGA to get all the data from the company imported to our system.

 

I have legal bills from before the insolvency that were not paid.

Legal expenses incurred prior to the liquidation date are not a covered item with CIGA. They may be handled by the liquidator of the liquidated insurance company. You may need to file a proof of claim (POC) with the liquidator/estate.

 

What does "liquidation" mean.

Liquidation is similar to a bankruptcy. Except in the case of insurance companies, the process is managed by state courts and state insurance departments within the domiciled state of the liquidated insurance carrier.

 

We have a default judgment against the insured, will you pay the judgment?

Once CIGA receives your claim from the liquidator, you will be contacted by the adjuster to discuss this issue. CIGA will take down your contact information and questions so that someone can contact you upon receipt of the file. CIGA does not pay default judgments, but this can often be cured. Your adjuster will assist you once we have your file.

 

My collision claim was resolved prior to liquidation. When will I get my money?

Once CIGA receives your claim from the liquidator, you will be contacted by the adjuster to discuss this issue. In almost all cases your claim will be honored shortly thereafter.

 

I just paid my six (6) months premium. Will I get my money back?

CIGA pays 'unearned' premium back to the policyholders but until additional information is received from the liquidator of the insolvent insurer CIGA cannot do so, so it may be a number of months before these refunds are made.

 

My car has been repaired but the body shop is waiting for the insurance payment. What should I do?

Until CIGA has your claim from the liquidator we are unable to pay claims. Your adjuster will help you document the loss to expedite payment once we have your file.

 

How soon will I get a call back from an adjuster?

It may take a few days or weeks to obtain a copy of the file from the liquidator to be sent to us. Once your adjuster is assigned they will contact you.

 

If you have moved or changed phone numbers please provide that information to us. CIGA's only source of receiving documents is the address below. Mail received at this address will result in the item sent to be imaged and electronically routed to the assigned adjuster.

 

California Insurance Guarantee Association

PO Box 29066

Glendale, CA 91209

 

You may also fax claim documents to CIGA at (818) 291-1863. Please include the CIGA claim number and the documents faxed will be electronically routed to the claim/adjuster.  If you do not have the CIGA claim number, please include the pre-fix 149-, followed by the Western General claim number (Example: 149-123456A).

 

What if I have a new claim that I want to report?
If you already reported the claim you need do nothing. We will have your claim information soon.

 

To report a new claim you may either:

 

1. Call (800) 758-3311 to report the loss or,

2. File on the Western General Website online - https://www.westerngeneral.com/

 

Has my policy been cancelled?

The Liquidation Order will set the date of cancellation, usually 30 days after the effective date of the order, unless your policy terminates prior to this date. Insureds are encouraged to work with your insurance broker to replace your insurance coverage immediately.